India’s largest private FM station, Radio Mirchi, owned by the largest private FM broadcaster, Entertainment Network (India) Ltd (ENIL) is mulling to spend a capital expenditure (capex) of Rs 800–1,000 crore (Rs 8–10 billion) over the next three years for acquiring of new licences in the upcoming FM Phase III auctions, for migration of its existing licences from Phase II to Phase III regime and for inorganic growth of the station.
It is learnt from the sources that, the company is going to fund the capex through its existing surplus liquidity and debt of up to Rs 400 crore (Rs 4 billion). As on 31st March 2015, the company’s cash and bank balance stood at Rs 560 crore (Rs 5.6 billion).
ENIL is engaged in a legal war with the government after the Information & Broadcasting Ministry (MIB) has denied its approval for acquisition of TV Today Network’s FM radio, Oye FM by ENIL. The MIB had declined the approval on the ground that the proposed sale is not in conformity with the FM radio guidelines. ENIL has filed a writ petition in the Delhi High Court and the matter is sub-judice.